Employment grew by a robust 216,000 in December to end the year on a high note, although the unemployment rate remained unchanged at 3.7%, the U.S. Bureau of Labor Statistics reported Friday.
Employment continued to increase mainly in the government, health care, social assistance and construction sectors, while the transportation and warehousing industries lost jobs. The professional and business services sector added 13,000 jobs, including 4,400 in accounting, tax preparation, bookkeeping and payroll services.
"Experienced accountants like senior accountants have been a major hiring focus, especially those with public accounting backgrounds," said Tom Gimbel, CEO of LaSalle Network, a Chicago-based employment agency that works with accountants. "Salaries have plateaued since the spike we saw in 2022 and seem to remain that way. However, candidate salary expectations have continued to slightly increase year over year."
Average hourly earnings rose by 15 cents, or 0.4%, to $34.27, in December. Over the past 12 months, average hourly earnings have risen 4.1%.
The BLS also revised downward some of the previously reported numbers for October and November, subtracting 45,000 jobs from October's total, going from a gain of 150,000 jobs to 105,000, and November by 26,000 jobs, going from a gain of 199,000 to 173,000 jobs. With both revisions, employment in October and November combined was 71,000 lower than previously reported.
The latest job numbers will surely weigh into the Federal Reserve's decisions this year about lowering interest rates.
"There are a few vital signs officials can monitor when trying to diagnose the health of the economy, and the labor market is a crucial one," said Sophie Lund-Yates, lead equity analyst at Hargreaves Lansdown in Bristol, U.K., in a statement. "Developments show that the U.S. labor market isn't losing steam, ultimately suggesting that economic activity will need a heavier hand to slow it down. That could see interest rate cuts across the pond pushed further out than hoped — bad news for the market, which until recently was pricing in heavy cuts this year."
